Sources: Time Warner In Liberate Talks

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LOS ANGELES -Time Warner Cable is in talks with Liberate Technologies about piloting Liberate's interactive-television software and, possibly, a deeper partnership or relationship, industry sources said.

Such an agreement could be tied to Time Warner's pending merger with America Online Inc. The online provider's recently launched AOL TV service uses Liberate as its underlying software.

The deal would give Liberate the green light with another major U.S. MSO. Liberate also has deployment or trial agreements with operators such as AT&T Broadband, Cablevision Systems Corp. and Insight Communications Inc.

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